BitConnect has become a name somewhat synonymous with fraudulent actors exploiting the reputation of the digital currency industry. The company previously ran a lending service, which closed amidst cease and desist orders. Now, the Ontario Securities Commission (OSC) is warning investors about the platform’s current operations.
As the OSC mentions in its warning to investors, BitConnect manages both bitconnect.co and bitconnectcoin.co, which facilitate its BitConnect Coin (BCC) exchange platform. The BCC Exchange offers various investment opportunities to the public, many of which are heavily scrutinized.
[maxbutton id="1" ]
The OSC mentions that BitConnect, its exchange, and the platform’s representatives are not registered in Ontario. Therefore, they are prohibited from soliciting investments from the public. Further, the platform is not allowed to provide advice on investing in, buying, or selling securities. The OSC calls for residents of Ontario that received contact from the organization or its representatives to contact the OSC Inquiries and Contact Centre, either by calling 1-877-785-1555 or emailing inquiries@osc.gov.on.ca.
Prior to BitConnect shutting down its lending services in early 2018, the company was under constant fire from both the community and industry pioneers, who called it a Ponzi scheme. This belief was further reinforced when the organization closed its lending services amidst the Texas State Securities Board issuing emergency cease and desist orders. These orders were filed on January 4, 2018 against BitConnect, and furthered calls for the platform’s closure. As of January 24th, 2018, the Southern District of Florida officially began dealing with a class action complaint on behalf of investors alleging fraud. The plaintiffs allege that BitConnect intentionally defrauded them of hundreds of thousands of dollars, and seek restitution. “Sure enough, the crypto-Wonderland created by BitConnect was too good to be real,” the complaint read. “The business’s closure in January 2018 revealed a Ponzi scheme, numerous securities laws violations, and thousands upon thousands of investors who lost 90+% of their holdings at BitConnect.”It is possible that the Ontario Securities Commission warning investors about BitConnect is part of its broader mission to help remove fraudulent actors from the digital currency landscape. Recently, the OSC announced that it will make innovative digital currency regulation a key focus for the 2018-2019 financial year, and stated that it will not stifle innovation in the process.Image credit: OSC logo
Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinsquare.
[maxbutton id="2"]
